Why pay mortgage bi-weekly?

Answer:

When you pay mortgage bi-weekly your loan amortizes faster and you drastically reduce the amount paid in interest. The bigger the loan, the longer the term, the more effective paying mortgage bi-weekly turns out.

Consider a jumbo loan of $700,000 at 8.125 for 25 years. When paying mortgage bi-weekly, this jumbo will amortize in 20 years, instead in 25, and you will save $230,000 in interest. This is huge.

Accelerated biweekly mortgage payment is a very effective tool in paying off mortgage loans. The only problem is whether your lender actually agrees to have your loan repaid with bi-weekly mortgage
payments, as not every lender will accept accelerated repayment of a loan.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.